Friday, October 12, 2012

Small Ball, Market, Iran

Small Ball
Stock trades have been successful. Of the last nine trade, eight have made money.  The most successful for the trades included a a series of puts and call options on CLF.  There have not bee many home run pitches to swing at, so small ball has been the theme. Getting runners on base, and then figuring out a way to score the runners.

There is something to be said about limit order trading.  It has become a preferred method of executing trades.  A range-bound stock offers entry and exit points... albeit small, there is profit to be made. REXX and KOG have also been trades. In this case options are not an option. Instead, opening positions on the low-end range... and selling on the high-end range has worked.

A broker at Schwab suggested using StreetSmart Software to execute more profitable trade.  This will be something that requires more research, and more time.

The market appears to be range bound... and will remains so until after the 2012 Election cycle.  There is uncertainty on a numbers of fronts. Most notably, control of the House and Senate is up for grabs. However, the Iran Question appears to be a looming concern. And the next President (whomever it is) will need to form a diplomatic team. Finally, there must be a concerted effort to keep spending power in middle class America. Whether the 1% realizes it or not, a vibrant middle class is needed to make America work. There must be a reasonable access to education, and more importantly participation in the American Dream.

More on Iran
As fate would have it the radical mullahs in Iran are becoming increasingly out-of-touch with the people who long for democratic reforms. It is critical that this hand is played well, and the very people who can cause change from the inside out...  Most people will agree that the average people in the middle east want basic political freedoms, and a chance to participate in the 21st century.


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